5 Ways to Keep a Budgeting Strategy Current
Posted: April 5, 2024
Imagine this, you just started saving for a vacation. You need a plane ticket, a place to stay, rental car and more. But some friends just invited you to join the weekend excursion of a lifetime (or so they say). You have enough money to join, and serious FOMO has just kicked in. You try working up the courage to say no, but they insist that you can’t miss this opportunity. So instead of speaking up and saving for your trip, you go with your friends and hope that you will be able to afford all the expenses for your upcoming vacation. On top of that, you’ll have to cancel some of the fun events you planned on your trip due to budget constraints.
While this scenario may seem specific, you can easily interchange parts of the story to match situations that we have all been in. No one want to feel like the “fun police” spoiling a good time, and it can be hard to speak up in these situations. This is where a new concept called loud budgeting comes into play! Let’s dive into what this tactic means, and how we can use other budgeting insights to reach your goals.
What is Loud Budgeting?
Loud budgeting is a social trend that has taken TikTok and social media by storm, and for good reason. Recently, it has become easy to compare oneself to the exciting or picture-perfect lifestyle that many social media influencers portray. Mimicking their life of luxury may be fine for a moment, but unless you have the money to spend, it’s a fleeting idea that can leave you tight for cash until your next paycheck. Loud budgeting is attempting to normalize living within your means and focuses on boundary-setting and communication for your current financial situation. The goal is to speak up about what you can and cannot afford and to hold yourself accountable for your savings goals. Additionally, it’s a great way to combat money shaming and informs your peers you’re living within a budget.
Building the Foundation for a Budget
It’s important to lay out your financial plans and create a budget that matches your lifestyle. While loud budgeting is a great tool to keep you on track, it’s not a complete roadmap for budgeting. Like many things, the first step can often be the hardest. A good place to begin is by evaluating your debt-to-income ratio (all your monthly debt payments divided by your monthly income) to see what you have left over to save every month; this is your net income. Use your net income as a launching point for your savings goals! If you are having trouble with this step, you can always use the Financial Health Checkup tool in Digital Banking for a complete evaluation, as well as personalized tips on how to improve your financial health. Additionally, we offer multiple online calculators to help you evaluate your savings goals, mortgage calculations or debt consolidation.
5 Ways to Keep This Trend in Your Daily Life
Make this social trend a habit rather than a fleeting thought, focus on some of these key tips to help you become a budget expert.
1. Do Your Research:
If budgeting is a new concept to you, take your time and research budgeting tips and tricks. Listen to a financial podcast, watch videos on proper budgeting tactics or follow someone on a similar journey. There are a lot of budgeting methods out there, so make sure you find the one that fits you.
2. Share Your Goals:
Talking with others, like a friend or family member, about your goals can help you understand how far you have come with your own finances. Or it could help you figure out a difficult part of your savings journey. At the very least talking it through will keep a consistent spotlight on your budget goals.
3. Be Positive:
Always keep a positive outlook on your finances! Whether you’re looking at a mountain of debt or are simply saving for a big vacation, we have the tools to help you get there. Write yourself a positive note or ask others to give you a boost in confidence when needed. Remember, proper budgeting is a marathon not a sprint.
4. Don’t Compare:
We often form a habit of comparing our current situation with others. Remember that we all come from different backgrounds and your circumstances could be completely different from someone else’s. If a friend or coworker has zero financial troubles, don’t think poorly on your current progress. Keep going and focus on your goals, not the status of others.
5. Planning and Consideration:
Create a habit of keeping your budget goals on hand. Next time you plan a road trip, vacation or special event, seeing your goals while planning can help keep them top of mind.
3 Ways to Stay on Track
1. Talk With an Expert:
Make an appointment with a professional. Chatting with an expert on the subject can be an invaluable experience. Make it a point to sit down and review your current financial situation, create a budget roadmap, talk about key milestones and discuss different avenues. Our financial consultants are always here to help you reach your goals.
2. Find Alternative Routes:
Your base income will get you far, but make sure you look at other routes for income. There is more than one way to reach your savings goals. Products or services like investment centers, money markets, certificates and rewards credit cards are all great options for out of the box savings options. Look to Landmark to get started with one or more of these account types.
3. Budgeting Programs:
Loud budgeting is not the first budgeting tactic to pop up, and it won’t be the last. If you currently have a keen understanding of your debts, income, goals and spending habits, you’re already practicing a healthy budgeting lifestyle. If not, check out some other budgeting basics like the 50-30-20 rule, zero-based budgeting or the envelope system. As long as you’re not stuffing your cash under the mattress, any one of these strategies can help.
Breaking Down the Idea
Creating a budget and adhering to it can be a lot easier said than done but strategizing your plans with ideas like loud budgeting or the 50-30-20 rule can help you stay accountable. Simply put, it helps you make better spending decisions that can support your savings goals. Building confidence in your personal and financial decision making is key when sharpening your budgeting skills. The more comfortable you are in your situation and the more knowledge you have on what you can and cannot spend, the better off you will be. There are plenty of tools out there to get you started, and Landmark is here to help! Start by analyzing your personal financial health in Digital Banking or scheduling an appointment with an expert.